New corona shutdowns threaten Chinese electronics production

The Chinese government is initiating a new round of corona-related shutdowns and austerity in the heart of the country’s electronics and industrial metropolises.

Dozens of millions of residents in the cities of Chengdu and Shenzhen and 66 other cities are now subject to restrictions that may last for weeks, writes the financial media Financial Times.

Among the restrictions are partial and full shutdowns, which Shenzhen’s 17.5 million inhabitants are subject to for three days after 17 new corona cases have been detected in the city. Shenzhen is the centre of China’s chip and electronics production, where previous lockdowns have contributed to the component drought that has plagued global markets.

In the industrial city of Chengdu, 21 million inhabitants are subject to a four-day lockdown after 140 cases of the coronavirus have been detected.

The new corona measures are putting pressure on an already affected Chinese economy, where a burgeoning housing bubble and repeated corona shutdowns have pushed the country’s GDP growth to just 0.4 percent in the last quarter. This corresponds to a third of the expected growth, writes the media.